Federal-Provincial Fiscal Arrangements Act

Marginal note:Definitions

• 4 (1) The following definitions apply in this Part.

  eligible revenues

  eligible revenues means, in respect of a territory for a fiscal year, the amount equal to the product obtained by multiplying the fiscal capacity of that territory for that fiscal year by 0.70. (revenus admissibles)

  fiscal capacity

  fiscal capacity means, in respect of a territory for a fiscal year, the amount determined by the formula

  (A + B + C) / 3

  where

  A

  is the aggregate of the yields in that territory for each revenue source for the fiscal year that is two years prior to that fiscal year;

  B

  is the aggregate of the yields in that territory for each revenue source for the fiscal year that is three years prior to that fiscal year;

  C

  is the aggregate of the yields in that territory for each revenue source for the fiscal year that is four years prior to that fiscal year. (capacité fiscale)

  gross expenditure base

  gross expenditure base means,

  • (a) for the fiscal year beginning on April 1, 2015, an amount equal to

    • (i) $1,065,524,388 in respect of Yukon,

    • (ii) $1,551,787,629 in respect of the Northwest Territories, and

    • (iii) $1,579,969,113 in respect of Nunavut; and

  • (b) in respect of a territory, for each subsequent fiscal year, an amount determined by the formula

    (A × B) + C

    where

    A

    is the amount determined to be the gross expenditure base for that territory for the fiscal year preceding that fiscal year,

    B

    is the population adjusted gross expenditure escalator for that territory for that fiscal year, and

    C

    is the gross expenditure base adjustment determined under paragraph 4.2(a) for that territory for that fiscal year. (base des dépenses brutes)

  national average rate of tax

  national average rate of tax means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces and territories by the revenue base in respect of that revenue source for that fiscal year for all provinces and territories. (taux d’imposition national moyen)

  population adjusted gross expenditure escalator

  population adjusted gross expenditure escalator means, in respect of a territory for a fiscal year, a factor equal to the product obtained by multiplying

  • (a) the population adjustment factor for that territory for the fiscal year

  by

  • (b) the provincial local government expenditure index for the fiscal year. (facteur de majoration des dépenses brutes rajustées en fonction de la population)

  population adjustment factor

  population adjustment factor means, in respect of a territory for a fiscal year, the measure of the population growth of that territory relative to the population growth of Canada and may be defined more particularly by the regulations. (facteur de rajustement en fonction de la population)

  provincial local government expenditure index

  provincial local government expenditure index means, for a fiscal year, the measure of changes in provincial and territorial government spending on programs and services and may be defined more particularly by the regulations. (indice provincial des dépenses des administrations locales)

  revenue base

  revenue base means, in respect of a revenue source for a territory for a fiscal year, the measure of the relative capacity of that territory to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations. (assiette)

  revenue block

  revenue block[Repealed, 2013, c. 33, s. 122]

  revenue source

  revenue source means any of the following sources from which territorial revenues are or may be derived:

  • (a) revenues relating to personal income;

  • (b) revenues relating to corporate income and government business enterprises;

  • (c) revenues derived from tobacco;

  • (d) revenues derived from motive fuel taxes from the sale of gasoline;

  • (e) revenues derived from motive fuel taxes from the sale of diesel fuel;

  • (f) revenues derived from the sale of alcoholic beverages;

  • (g) revenues derived from payroll taxes;

  • (h) revenues derived from property taxes; and

  • (i) revenues relating to consumption taxes excluding revenues derived from excise taxes. (source de revenu)

  revenue to be equalized

  revenue to be equalized, in respect of a revenue source for a territory for a fiscal year, means

  • (a) the revenue, as determined by the Minister, derived by that territory for that fiscal year from that revenue source; and

  • (b) in the case of a revenue source referred to in paragraphs (a), (b), (h) and (i) of the definition revenue source, the product obtained by multiplying the sum of miscellaneous revenues derived by that territory for the fiscal year by the quotient obtained by dividing the sum of revenues from that revenue source derived by all territories for that fiscal year by the sum of all revenues derived by all territories from the revenue sources referred to in paragraphs (a), (b), (h) and (i) of the definition revenue source for the fiscal year.

  It may be defined more particularly by the regulations. (revenu sujet à péréquation)

  superannuation adjustment

  superannuation adjustment means, in respect of a territory, for each fiscal year, the amount determined by the Minister of Public Works and Government Services to be equal to, with respect to the fiscal year that is two years prior to that fiscal year, the difference between the amount of the superannuation contribution that is payable by that territory under the Public Service Superannuation Act and the amount that would be payable by that territory under that Act as it read on June 16, 1999. (montant de l’indexation des pensions)

  yield

  yield means, in respect of a territory for a revenue source for a fiscal year, an amount equal to the aggregate of

  • (a) the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that territory’s revenue base in respect of that revenue source for that fiscal year, and

  • (b) the yield adjustment determined under paragraph 4.2(b) for that fiscal year. (rendement)

• Marginal note:Redetermination — gross expenditure base for 2016-2017

  (2) For the purposes of the definition gross expenditure base in subsection (1), the Minister may, at any time during the fiscal year beginning on April 1, 2016, recalculate the amount determined to be the gross expenditure base in respect of a territory for that fiscal year using the following population adjusted gross expenditure escalator:

  • (a) 1.02497 in respect of Yukon;

  • (b) 1.01377 in respect of the Northwest Territories; and

  • (c) 1.02833 in respect of Nunavut.